Industrial production in the country slowed to a 14-month low in October, as per government data, with the decline being attributed to sluggish manufacturing sector and lower output in electricity and mining sectors.
The National Statistics Office (NSO) on Monday released data that showed the index of industrial production (IIP) rose an annual 0.4 per cent in October, lower than the 4.6 per cent growth in September, and below the 3.7 per cent recorded growth in October last year.
While domestic consumption improved across major segments post the Goods and Services Tax (GST) rate cut in September, output in the manufacturing sector, which accounts for a bulk of the index, slowed to just 1.8 per cent in October, compared to 4.4 per cent in October last year.
The Ministry of Statistics and Programme Implementation attributed the slow industrial production growth to fewer number of working days in the month, owing to most festivals, including Dussehra, Diwali and Chhath, being in October.
Meanwhile, the electricity sector also contracted 6.9 per cent in the month, compared with 2 per cent growth in October last year. Mining sector growth fell 1.8 per cent compared with an expansion of 0.9 per cent in the year-ago period.
Also Read: Manufacturing sector growth pushed industrial output in Sep
“While all the three production-based segments witnessed a deterioration, the surprise largely stemmed from manufacturing, wherein the growth in output eased to 1.8 per cent from 5.6 per cent in Sept 2025. The contraction in electricity and mining output expectedly widened between these months, with excess unseasonal rains (at 149 per cent of Long Period Average in Oct 2025) weighing on these segments,” said Aditi Nayar, chief economist at ratings agency Icra.
Besides the growth rates of the three key sectors of mining, manufacturing and electricity in October logged at -1.8 per cent, 1.8 per cent and -6.9 per cent respectively, the capital goods sector, which is also a key gauge of investment activity, displayed marginal rise by 2.4 per cent in October, compared to an expansion of 5.4 per cent in Sept.
The consumer durables segment fell 0.5 per cent in Oct compared to a 10 per cent growth in September, while the non-durables sector contracted 4.4 per cent in Oct compared to a 0.3 per cent decline in September.
Economists expect robust rural incomes, low inflation, and reduced interest rates to bolster consumption in the mid-term as the government attempts to meet fiscal deficit target.
The IIP data tracks short-term changes in output across a basket of industrial products, with eight core industries accounting for 40 per cent of index’s weight, including steel, cement, electricity, and fertiliser.
Follow us
